Hong Kong Expands Benchmark Rate-Manipulation Probe To HSBC

HSBC Canary Wharf

Hong Kong’s central bank has expanded an investigation into possible misconduct linked to the city’s benchmark rates to HSBC and other lenders following crackdowns from the U.S. to U.K., Japan and Singapore.

Bloomberg reports that The Hong Kong Monetary Authority’s probe, which started with UBS in December and has since been widened to 'a number' of banks, is continuing, it said in an e-mailed statement Tuesday.

London-based HSBC, whose shares are listed in Hong Kong, has been asked to 'promptly implement' remedial measures required by Singapore’s central bank last week following a similar investigation in the city-state, HKMA said.

The review into the submission of data by banks for setting the Hong Kong Interbank Offered Rate and other benchmarks comes amid increased global scrutiny.

Singapore last week censured 20 banks for attempts to rig its rates and asked them to set aside as much as $9.6bn pending steps to improve controls, while Britain’s market regulator began looking into the currency market after Bloomberg News reported that traders had manipulated key rates.

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Hong Kong Expands Benchmark Rate-Manipulation Probe to HSBC

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